Broadcast licenses represent the excess of the cost of an acquired television station over the sum of the amounts assigned to assets acquired less liabilities
assumed. Intangible assets, which include network affiliation agreements and other intangibles, are carried on the basis of cost, less accumulated amortization.

Broadcast
licenses are reviewed annually for impairment or whenever an impairment indicator arises. Intangible assets that have definite lives are amortized over their useful lives. The
Company performed its annual impairment test in the fourth quarter of 2005, 2006 and 2007 and determined that the fair value of all indefinite-lived assets were in excess of its carrying value.

Broadcast
licenses and definite-lived intangible assets are as follows:

As of December 31, 2006

As of December 31, 2007

Gross
Carrying
Amount

Accumulated
Amortization

Net
Carrying
Amount

Gross
Carrying
Amount

Accumulated
Amortization

Net
Carrying
Amount

(dollars in thousands)

Indefinite lived intangible assets:

Broadcast licenses

$

124,492



$

124,492

$

124,492



$

124,492

Definite lived intangible assets:

Network affiliations

$

91,164

$

(33,783

)

$

57,381

$

91,164

$

(36,652

)

$

54,512

Other intangible assets

2,847

(1,979

)

868

2,847

(2,079

)

768

Total definite lived intangible assets

$

94,011

$

(35,762

)

$

58,249

$

94,011

$

(38,731

)

$

55,280

Aggregate
amortization expense for the years ended December 31, 2005, 2006 and 2007 was $3.0 million and expects to be $3.0 million in each 2008 through 2012.
Network Affiliation Agreements are amortized over 25 years, and other definite lived intangible assets are amortized over 10 to 15 years.

69

Young Broadcasting Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

It
is the Company's policy to account for Network Affiliations and other definite-lived intangible assets at the lower of amortized cost or estimated fair value. As part of an ongoing
review of the valuation and amortization of other intangible assets of the Company and its subsidiaries, management assesses the carrying value of Network Affiliations and other definite-lived
intangible assets if facts and circumstances suggest that there may be impairment. If this review indicates that Network Affiliations and other definite-lived intangible assets will not be recoverable
as determined by a non-discounted cash flow analysis of the operating assets over the remaining amortization period, the carrying value of other intangible assets would be reduced to their
estimated fair value.

The
Company tests the broadcast licenses using a "Greenfield" income approach. Under this approach, the broadcast license is valued by analyzing the estimated after-tax
discounted future cash flows of the station. The assumptions used in the discounted cash flow models reflect historical
station performance, industry standards and trends in the respective markets. An analysis of the financial multiples for publicly-traded broadcasting companies, as well as a comparable sales analysis
of television station sales, was also utilized to confirm the results of the income approach. The Company adopted this methodology to value broadcast licenses as the Company believes this methodology
has, in recent years, become the methodology generally used within the broadcast industry to value such licenses.

If
operating conditions or assumptions supporting the valuation of these intangible assets materially change in the future, the Company may be required to record impairment charges not
previously recorded for these assets.